Valero Energy Corporation (VLO)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,035,000 | 5,152,000 | 8,051,000 | 9,591,000 | 11,956,000 | 14,768,000 | 15,035,000 | 18,502,000 | 15,835,000 | 12,879,000 | 9,837,000 | 4,196,000 | 2,175,000 | 865,000 | 140,000 | 1,894,000 | 270,000 | 2,458,000 | 3,877,000 | 2,981,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 24,512,000 | 25,253,000 | 25,443,000 | 26,057,000 | 26,346,000 | 25,975,000 | 25,851,000 | 24,977,000 | 23,561,000 | 23,715,000 | 20,969,000 | 18,821,000 | 18,430,000 | 17,476,000 | 17,651,000 | 17,801,000 | 18,801,000 | 19,223,000 | 19,847,000 | 18,842,000 |
| Return on total capital | 16.46% | 20.40% | 31.64% | 36.81% | 45.38% | 56.85% | 58.16% | 74.08% | 67.21% | 54.31% | 46.91% | 22.29% | 11.80% | 4.95% | 0.79% | 10.64% | 1.44% | 12.79% | 19.53% | 15.82% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,035,000K ÷ ($—K + $24,512,000K)
= 16.46%
Return on total capital is a key financial ratio that measures a company's ability to generate profits from its total invested capital. For Valero Energy Corporation, the return on total capital fluctuated over the periods provided, ranging from as low as 0.79% in June 2021 to as high as 74.08% in March 2023.
The ratio indicates the efficiency of Valero in utilizing both equity and debt to generate profits. A higher return on total capital is generally seen as favorable, indicating effective capital allocation and operational performance.
Valero's return on total capital showed significant improvement from 2022 to early 2023, reaching peak levels before experiencing a decline in the latter half of 2023 and into 2024. The decrease in the ratio suggests a potential decrease in profitability relative to the invested capital during these periods.
Overall, the return on total capital trend for Valero Energy Corporation demonstrates periods of strong performance followed by fluctuations, highlighting the importance of closely monitoring financial performance to assess the company's productivity in utilizing its capital effectively.
Peer comparison
Dec 31, 2024